NZD/USD Dojis Denote Indecision As Sideways Drift Persists

NZD/USD continues to search for direction with several successive Doji formations denoting indecision from traders. The pair’s recent consolidation has failed to confirm the Hammer formation on the daily, which casts doubt on the potential for a corrective bounce. A daily close below the nearby 0.8460 floor would open the door to a run on the 0.8400 barrier.

The four hour chart provides a more pronounced picture of the Kiwi’s recent consolidation. Intraday resistance at 0.8480 continues cap gains, yet bearish patterns remain notably absent. Playing an eventual break may provide a more rewarding alternative than trying to capture a narrowing range.

NZD/USD: Awaiting Break From Narrow Intraday Range

Four Hour Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

By David de Ferranti, Currency Analyst, DailyFX

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